Indian economist and former Governor of the Reserve Bank of India (RBI), Raghuram Rajan has recently made a shocking revelation about the Central government's demonetisation drive.

In his latest book – 'I do what I
do: On Reforms Rhetoric and Resolve', that will be released next week,
Rajan said that he did not favour the note ban decision as the short-term
economic costs associated with such a disruptive decision would exceed long
term benefits in the Indian economy.

In
Focus

The 54-year-old ex-Governor of the Central Bank wrote that the RBI
had not been consulted to take such a decision at any point during his term.

"I was asked by the government in February 2016 for my view on
demonetisation, which I gave orally. Although there might be long-term
benefits, I felt the likely short-term economic costs would outweigh them," writes
Rajan in his book that will release next week, as reported by Times of India.

He also wrote, "I made these views known in no uncertain terms."

Rajan also told the newspaper in an interview that the Centre's
note ban decision had a disruptive effect on the Indian economy.

"I think all said and done, it would be fair to say the intent was
good. But certainly at this point, one still cannot in any way say it has been
an economic success. But again, as I said, only time will tell," Rajan was
quoted as saying.

Earlier, Congress senior leader Anand Sharma had also criticised
PM Modi's note ban decision saying that Prime Minister Narendra Modi should
apologise for demonetisation, terming it as the country's "biggest scam" which
had imposed "misery" on the citizens and dealt a "body blow" to the economy.

Sharma said, "Demonetisation is the biggest scam, as the
government has helped the wrong people legitimise their illegitimate money
through it and has betrayed the poor people of the country with false promises."